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Navigating Credit Terms for New Customers.
As a small business owner, if I receive a large order from a new customer requesting credit terms of 90 days, how should I evaluate the customer’s creditworthiness to decide whether or not to extend credit?
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2 Replies
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779
Before granting a 90-day credit term to a new customer, small business owners must evaluate their creditworthiness. Collecting detailed information about the customer, such as their business name, address, phone number, and email, is a crucial step in the assessment process.
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899
It’s important to examine the customer’s payment history with other vendors to determine the risk of default. Late or missed payments are red flags. Other factors that may impact their ability to pay, such as economic conditions, industry trends, and competition, should also be considered.
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